Kkr From Oreos To Magazines

Why did Murdoch unload his publishing empire? News Corp. Ltd., Murdoch’s media conglomerate, is mired in $8.2 billion of debt, a big chunk of it stemming from his $3 billion purchase of TV Guide in 1988. Knowing that some of his less than-profitable magazines –among them Premiere-would be hard to peddle in the current market, Murdoch wanted to sell the publications as a group. For KKR, the deal enlarges its media interests, which include Funk & Wagnalls encyclopedias and The Weekly Reader. Industry experts don’t expect the partnership, known as K-III Holdings, to tinker much with the editorial content of the acquisitions–but certain subjects may be verboten. Says Richard MacDonald, a New York media analyst: “I bet there won’t be any Henry Kravis covers on New York.”